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jolli1 [7]
4 years ago
8

Suppose gdp in this country is $800 million. enter the amount for government purchases. national income account value (millions

of dollars) government purchases ( gg ) taxes minus transfer payments ( tt ) 260 consumption ( cc ) 300 investment ( ii ) 300
Business
1 answer:
Bess [88]4 years ago
7 0

Answer:

Therefore government purchases is $300 million

Explanation:

In this case, GDP is the sum of consumption, investment, and government purchases. To calculate the value of consumption we use the formula:

CC + II + GG = Y

GG = Y - CC - II

Where:

government purchases = GG

taxes minus transfer payments (TT) = $260 million

consumption (CC) = $300 million

investment (II) = $300 million

Y = country GDP = $800 million

GG = Y - CC - II

Substituting:

GG = $800 million - $300 milllion - $300 million

GG = $200 million

Therefore government purchases is $300 million

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Actual sales volume for a period is 5,000 units. budgeted sales volume is 4,500. actual selling price per unit is $15 and budget price per unit is $15. 75. the sales price variance is $3,750

Sales Price Variance:

The term "sales price variation" describes the discrepancy between a company's anticipated price for a good or service and the amount that was actually paid for it.

Reduced competition, higher sales price realization, general inflation, a sudden rise in product demand, etc. are a few potential reasons for a favorable sales price variance.

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